ECON 319 Chapter Notes - Chapter 1-10: Troubled Asset Relief Program, Export Development Canada, Systemic Risk
9 Feb 2017
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Document Summary
Crisis and intervention conference board of canada. Central argument: there are 10 lessons that we have learned from the global financial crisis. The text focuses on fiscal and monetary policy measures, the need for international trade, global coordination and what needs to be done post-recovery. Cuts in consumption taxes are the least useful: central problem remains that there is a massive discrepancy between core public spending (health care, ei insurance) and the tax base the government has to work with. The core spending is at major risk of increasingly massively as the baby boomers enter older age and health care spending increases. With the baby boomers retiring, the tax base may start to decline without an increase in taxes as the labour force will likely shrink: majo(cid:396) fis(cid:272)al sti(cid:373)ulus pa(cid:272)kages (cid:449)e(cid:396)e used a(cid:272)(cid:396)oss the (cid:449)o(cid:396)ld (ca(cid:374)ada"s (cid:449)as a(cid:396)ou(cid:374)d. Temporary tax cuts as fiscal stimulus run the risk of simply being pocketed by households rather than being spent in the economy.
